Employment Insurance System Act 2017 · Updated to 1 Sep 2022 · Part IV · Registration and Contributions
16. All employees to be registered and insured
Feedback & supportAll employees in the industries to which this Act applies shall be registered and insured by the employers—
in the case of employees who are employed on or before the date the industries are registered under section 14, on the date the industries of the employers are so registered; and
in the case of employees who are employed after the date the industries are registered under section 14 or 15, within thirty days from the date the employees enter into employment, in such manner as prescribed irrespective of the amount of wages.
Notwithstanding subsection (1), if the wages of an employee at any time exceed five thousand ringgit a month, his wages shall for the purposes of this Act be deemed to be five thousand ringgit a month.
wages
“wages” means all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does not include— Employment Insurance System 11 (a) any contributions payable by the employer to any pension fund, social security fund or provident fund; (b) any traveling allowance or the value of any traveling concession; (c) any sum paid to the employee to pay for special expenses incurred as a result of his employment; (d) any gratuity payable on discharge or retirement; (e) any annual bonus; (f) any benefit under any other written law administered by the Organization; and (g) any other remuneration as prescribed;
Notwithstanding that the employee in the industries to which this Act applies has not been registered in accordance with subsection (1), an employee in that industry shall be deemed to have been registered by the employer on the date the contribution is first paid by his employer under this Act.
employee
“employee” means a person who is employed for wages under a contract of service or apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, on or in connection with the work of an industry to which this Act applies;
The employer referred to in subsection (3) shall not pay the contributions in respect of the employee for the months prior to the month the contribution is first paid.
employer
“employer” means the owner of an industry or the person with whom an employee has entered into a contract of service or apprenticeship and includes— (a) a manager, an agent or a person responsible for the payment of wages to the employee; and (b) the legal representative of the owner of the industry or such person;
Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.